Annual Compounding (1) The future value, FV, is $ 14,098.73 (Round to the nearest cent.) (2) If the 12% annual nominal rate is compounded annually, the EAR is 12.00 % (Round to two decimal places.) Semiannual Compounding (1) The future value, FV, is $ 14,326.78 (Round to the nearest cent.) (2) If the 12% annual nominal rate is compounded semiannually, the EAR is 12.36 % (Round to two decimal places.) Quarterly Compounding (1) The future value, FV, is $ 14,448.89 (Round to the nearest cent.) (2) If the 12% annual nominal rate is compounded quarterly, the EAR is 65 % (Round to two decimal places.) Changing compounding frequency Using annual, semiannual, and quarterly compounding periods, (1) calculate the future value if $8,000 is deposited initially at 9% annual interest for 7 years, and (2) determine the effective annual rate (EAR) Annual Compounding